BARRATT Developments is the nation’s largest housebuilder and employs about 6,000 people across the country.

It’s an uncertain time for the UK’s housebuilders following the Brexit vote. Markets are expecting some sort of economic downturn and have significantly downgraded the prospects for the sector. However, until now, Barratt has been doing quite well. Over the past year, the group’s key sales metrics are up, with completions up 5.3 per cent and selling prices up by over 10 per cent to £260,000.

These improvements are expected to help send group profit before tax up 20 per cent to £680million. Chief executive David Thomas remains confident in the fundamental strength of the housing sector and the business. However, he has said it remains too early for the group to comment on the impact of the UK’s vote to leave the EU.

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Barratt does have plans in place to reduce risk, but it’s unlikely these could fully insulate the group from a downturn. That said, the result of the vote won’t change every factor affecting the industry, and some supportive factors will remain. Brits will still want to own homes, whether in or out of the EU, and government schemes such as Help to Buy will almost certainly be unaffected.

What’s more, interest rates look likely to stay lower for longer, which should continue to support mortgage affordability. The UK also still faces a major housing shortage, with around 100,000 more new households being formed each year than there are houses being built. If net migration into Britain falls as a result of leaving the EU, that may relieve some pressure in the long term.

But if it happens, that’s not going to be for a while, and in the meantime, there could actually be a spike in immigration, with people rushing to move before the rules change. All in all, it’s really too early to call what the full effects of the referendum will be for Barratt and its peers.

Like others in the sector, Barratt is continuing to offer high dividends just now, although these could come under pressure should a slowdown materialise. To that end, the company will be providing a more detailed update on post-Brexit trading in September.

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Chief executive David Thomas remains confident in the housing sector after Brexit

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Brits will still want to own homes, whether in or out of the EU

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